Cheques and cash

[Justin_Taylor]

Hiya, can you help pls
I need to reconcile bulk cash and bulk cheques! I have a good record… example:

Mr j £20 Cheq
Mr p £15 Cheq =£80 paid in
Mr s £45 Cheq

Mr h £25 Cash
Mr r £15 Cash =£50 paid in
Mr a £10 Cash

Obliviously these transactions hit my account as £80 and £50
I don’t seem to be able to tag these to the customers, so please, how is this achieved? I have looked at various articles, but cant find anything that helps.

Any help appreciated

[Lurch]

This article in the knowledge base should help;

Processing split payments to different customers

Introduction When tagging your bank ransactions, occasionally you may encounter lump payments that need to be attributed to multiple clients. This is often the case when you bank multiple cheques on one paying-in slip. There are two methods you can use for tagging these transactions. 1. Split the Original Deposit In this case you would delete the original lump deposit on the account and substitute it for the split payments. You can then tag these split payments separately. The end of day balanc…

Personally I always prefer option 2 as you don’t have to mess with the direct bank feed.

[FolkLondon]

I have switched to option 2 after a cheque went AWOL. It was no more difficult than logging direct to the bank account, makes reconcilliation easier and gives us visibility of unbanked cheques.

[ian_roberts]

I’d definitely have “bank accounts” in QuickFile to represent cash and cheques that have been received but not yet banked. You would log the payment from each customer into the relevant account when you receive it from them, then tag the money arriving in your current account as a transfer from cash or cheques as appropriate.

In particular, if you’re VAT registered and on cash accounting then you must do it this way, since the cash accounting rules say that payment is “received” on the date when you receive the cash or cheque, not the (later) date when you bank it.

[Justin_Taylor]

Thanks everybody for your replies , Ian Roberts … I’m going with your line of thought because I will become vat registered at some point within the next 2 years probably.

“bank accounts” are you suggesting I open another bank account? or do you mean something else, pls explain (I am very new).

Also, as a side point, When you receive cheques / cash, it shows up on statement and then when you go to tag it, it gives you the option to tag it to “Cash in” “Cheques in” WHY are these tag options available, at first I was tagging them! but realized these accounts were increasing in size but there was no way to reconcile … like I said, this is all new to me!

Your help very much appreciated.
Justin

[ian_roberts]

I don’t mean opening a new account with a real bank, I mean creating a new dummy bank account in QuickFile on the bank management screen. In QuickFile terms you use a “bank account” to represent anywhere that money needs to sit for a while before being moved on somewhere else - this might be a true account at a real bank, it might be a box of coins and notes, a collection of cheques that haven’t gone to the bank yet, the value of card payments you’ve taken from customers but not yet been paid back by your card provider, etc.

When you receive payment from a customer in cash you’d log it as paid into the “cash” account, by cheque into the “cheques” account, etc. This is the point at which the value effectively belongs to you, so when you subsequently pay the cash or cheques in to the bank you’re not receiving new money, you’re simply moving around money you already own. This is why in accounting terms the deposits in your current account are treated as transfers from the cash or cheque holding accounts rather than payments directly from the customers.

[Justin_Taylor]

Ok, great, I have created two dummy accounts Cheques and Cash… they are now tagged, but I still face same problem… Example:

Cash account £790
Cheques £650

In both situations, I am unable tag (15 separate customers/invoices) to cash and 20 separate customers/invoices… How do I do that?

Hey, I really appreciate your patience

[Lurch]

@Justin_Taylor

In both situations, I am unable tag (15 separate customers/invoices) to cash and 20 separate customers/invoices… How do I do that?

How exactly are “unable” to do this? What have you done so far? When you say the new accounts are tagged, what is tagged from where?

It should just be a case of tagging payments on your bank feed as transfers to the relevant cash/cheque accounts and marking the invoices as paid from the relevant cash/cheque account. Once you’ve done that everything should be paid up, the bank feeds should be tagged and the holding accounts should be zero.

[ian_roberts]

Normally you would log individual payments against each customer invoice into the relevant cash/cheque account on the date you were paid by that customer - on the invoice itself you “log payment” and choose the cash/cheque account as the destination account for the payment.

So you might end up with 15 different payments in to your cash account on various dates, which add up to a balance of £790. When you take that cash to the bank you’d tag the “money in” on your current account as a transfer from the cash account, which will automatically create the matching tagged “money out” on the cash account side and return its balance to zero.

[Justin_Taylor]

That’s the cookie Ian, I understand now, Lurch’s comment got me thinking, but your answer has cemented it.
If I could buy you a pint Ian I would!?
I’m very thankful for your help and time.
Justin